CME is capturing a growing portion of XRP futures activity as traders reduce leveraged exposure across other crypto exchanges, even as XRP approaches $1.40 following a strong rally.

CoinGlass data shows XRP futures open interest across the market fell to about 2.34 billion tokens on Aug. 31, down from roughly 2.77 billion on Aug. 17. XRP moved in the opposite direction, rising from around $0.99 to $1.38 over the same period.

CME was an exception to the broader decline. Open interest in XRP futures on the regulated US exchange increased from about 284 million tokens to 387 million, a gain of roughly 36%.

Outside CME, outstanding XRP futures positions contracted by around 533 million tokens, or 21%, over the two weeks. As a result, CME’s share of total XRP futures open interest rose to approximately 17%, compared with about 10% in mid-August.

The shift is noteworthy because institutional investors generally favor regulated trading venues, and some firms are required to use them. CME’s increasing share could therefore signal greater involvement from professional investors in XRP futures.

The market repositioning comes ahead of a key potential catalyst for XRP: the US CLARITY Act. The proposed crypto market-structure legislation has influenced XRP several times this year, with a Senate procedural vote expected in mid-September. XRP climbed about 5% after the bill passed the Senate Banking Committee in May.

Institutional Positions Diverge

CFTC data through Aug. 25 showed leveraged funds holding 892 long contracts against 3,206 shorts. That resulted in a net-short position equivalent to about 116 million XRP, more than twice the roughly 57 million XRP net short recorded a week earlier.

Dealers and asset managers were positioned differently. Dealers increased their net-long exposure by nearly 60 million XRP, while asset managers added roughly 28 million XRP to their long positions.

However, CFTC positioning data cannot show whether leveraged traders are directly betting on a decline in XRP or using futures to hedge exposure elsewhere. The 116 million XRP net-short figure therefore should not be treated as a pure bearish wager.

XRP Rally Continues as Leverage Declines

XRP’s futures-market shift follows its recovery from around $1 earlier in August. Overall futures exposure has fallen even as the token has rallied, while CME has continued to attract more open interest.

That is an unusual combination. Traders often move toward regulated exchanges when they are becoming more defensive or reducing risk.

In this case, the migration is occurring while XRP has gained nearly 40% over two weeks. That suggests the rally is unfolding alongside a broader reduction in leverage rather than being driven by a surge in speculative futures positions.

CME’s growing market share could indicate that professional investors are increasing their presence in XRP futures while traders on other crypto exchanges continue to cut leveraged exposure.